By Adria Calatayud

Banco Santander said it remains on track to meet its 2023 targets after it reported a forecast-beating rise in net profit for the third quarter, with income from higher interest rates boosting its top line.

The Spanish bank said Wednesday that net profit for the quarter was 2.90 billion euros ($3.07 billion), up 20% on year.

Total revenue rose 10% to EUR14.86 billion, mainly driven by higher net interest income--the difference between what banks earn on loans and pay clients for deposits--and a more muted increase in net fee income. Net interest income climbed to EUR11.22 billion in the third quarter from EUR10.52 billion in the second.

Analysts polled by FactSet expected Santander to report a quarterly net profit of EUR2.77 billion on total revenue of EUR14.58 billion.

The bank said its 2023 targets, including double-digit growth in revenue and a return on tangible equity--a key profitability metric--of more than 15%, remain on track.

"I am confident that we will achieve our 2023 targets given the positive momentum which we also expect to carry into 2024," Santander Executive Chair Ana Botin said.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

October 25, 2023 01:24 ET (05:24 GMT)

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